A New Product, an Automated Crepe Maker, Is Being Introduced

Multiple Choice

A new product, an automated crepe maker, is being introduced at Knutt Corporation. At a selling price of $59 per unit, management projects sales of 70,000 units. Launching the crepe maker as a new product would require an investment of $500,000. The desired return on investment is 12%. The target cost per crepe maker is closest to:

A) $59.00
B) $66.08
C) $58.14
D) $65.12